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January 2009 Archives

New Web Sites for Online Retailers

By numantra on January 30, 2009 8:05 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Friday, January 30, 2009


According to Internet Retailer's recent monthly survey, retailers are creating interactive page treatments and adding video, customer reviews and other advanced features. Merchants also are making site optimization a top priority and redesigning their web sites to achieve speedier navigation and faster performance.

The survey finds retailers updating their web sites, with 49.9% of merchants having rolled out a new design in the past year, including:

  • 26.6% in the last six months
  • 13.3% within 90 days

Improved site optimization is the top priority for 72.9% of merchants, followed by:

  • Clearly organized home, category and product pages at 62.4%
  • Better navigation at 49.4%
  • Improved site search at 47.1%
  • Faster checkout at 40%

With a more business-oriented approach to web site design, 81.7% of merchants also expect their latest redesign to attract a higher number of visitors and shoppers, while:

  • 76.7% anticipate higher sales,
  • 66.7% a higher sales conversion,
  • 50% improved customer service and
  • 48.3% better multi-channel sales.

David Wertheimer, director of strategy for Alexander Interactive Inc., notes "The fact that retailers are listing site optimization as their top design objective... says they want to create images and write text that do a better job of making them stand out on... major search engines."

The Internet Retailer survey finds that 43.3% of merchants will update their e-commerce sites with video this year, followed by 40% with personalized product recommendations, 36.7% with customer reviews and ratings, and 35% with product configuration tools.

"... Retailers... need to select and implement page treatments and advanced features that deliver a truly unique customer experience." Continued Wertheimer.

The survey finds that

  • 40% of retailers will do their next major redesign in-house
  • 20% will use a combination of internal staff and their incumbent design firm
  • 15% will give the job to their current agency
  • Of the retailers that do their own design work, 80% employ three or fewer full-time designers and web developers

61.2% of participants in the survey say limited personalization, or advanced features and functions that let shoppers see related items, store their preferences and update their personal information, are the biggest drawback to their current design, compared with 49.4% with outdated home, category and product pages, 45.9% that have no interactive applications, and 41.2% that only have limited advanced features or functions.

Please visit here to see the entire article and find additional information from Internet Retailer.

For more information visit www.mediapost.com

More Entertainment on Computer Than TV for Millenials

By numantra on January 29, 2009 8:04 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, January 29, 2009


 

According to Deloitte's State of the Media Democracy survey, three-quarters of Millennials (ages 14 to 25) view the computer as more of an entertainment device than their television. Ed Moran, Deloitte director of product innovation, notes that "This (early-adopter) generation of consumers was the first to be raised on the Internet and is united across borders and cultures by their digital media preferences, so the implications for global marketers are unprecedented."  

Across five surveyed countries, Millennials are the most active in gaming, music and Internet use for socializing:

  • 80% of Millennials are regularly searching, downloading and listening to music over the Internet
  • 73% are also regularly socializing online (via social networking sites, chat rooms or message boards)
  • 59% of Millennials use their mobile phone as an entertainment device, versus an average of 33% of all consumers.
  • Millenials are spending one-third less time watching their television than are other generations.

Ken August, Deloitte vice chairman and U.S. Media and Entertainment leader, says "What is less clear is the degree to which Millennial spending power will ebb with the economic sea change we're experiencing. Boomers (ages 43 to 61) already possess more discretionary income than any other generation...

Consumers across geographies rank television advertising as having the most impact on their buying decisions. Magazine, online and newspaper ads occupy a second tier of influence across all countries, with radio advertising influence only placing as high as fifth:

Types of Advertising Most Influential on Buying Decisions (% of Internet Users in Selected Country, September-October 2008)

Ads On:

Brazil

Germany

Japan

UK

US

TV

75%

73%

90%

84%

88%

Magazine

57

50

47

54

49

Online

45

57

61

45

48

Newspaper

30

49

54

44

42

Radio

30

49

54

44

27

Outdoor

14

21

6

14

10

Social networking

8

2

6

6

8

In-theater

8

6

4

11

7

DVD

9

4

3

8

7

Blog

6

2

13

4

6

Video game

9

3

2

6

4

Mobile phone

19

3

7

5

3

Source: Deloitte State of Media Democracy, January 2009 (top three choices per respondent)

A small percentage of consumers surveyed in all five countries consider cell phone advertising the most influential form of advertising, ranking as high as fifth in Brazil. In Japan, ads in blogs are rated as fifth most influential, while in the United Kingdom, ads in video games and social networking sites are tied for ninth most influential. German consumers rank billboard or outdoor advertising as sixth most influential. Search engine results and banner advertising are the two most influential forms of internet advertising across all five countries.

Cell phones have evolved from being a status symbol for the business elite to a ubiquitous multifunctional accessory. A third of consumers surveyed across all five countries state that they use their cell phone as an entertainment device:

  • 50% in Brazil
  • 34% in Japan
  • 33% in the United Kingdom
  • 32% of in the United States
  • 26% in Germany

Camera and text messaging are the most commonly used phone features overall, except in Japan where e-mailing is much more common than texting (88% versus 31% of Japanese consumers using these features frequently/occasionally).

Across all countries, consumers surveyed are using their cell phones to watch user-generated videos (20% in the United Kingdom and United States), and professionally created content such as TV, movies and news (33% in Japan.) Early-adopter Millennials are the primary drivers of feature applications including texting, video, gaming, music downloading and listening and social networking.

Television remains the top choice across all five countries for video viewing but the personal computer, cell phone and handheld portable devices are gaining in popularity among video consumers. Consumers surveyed not only view video on all these devices, but also watch television programming and download music, and they want the ability to move that content to any device seamlessly. 75% of respondents in Brazil want this ability, as do 49% in both the United States and Japan, 44% in the United Kingdom and 31% in Germany.

In a typical seven-day week, consumers online for just personal interests/social reasons include:

  • Germany... 11.3 hours per week
  • United States... 12 hours
  • United Kingdom... 13.2  
  • Japan... 16.4

The most eye-opening comparison, says the report, came from Brazil, where consumers spend approximately 9.8 hours a week watching television, but 19.3 hours a week pursuing personal/social interests online.

The online survey polled 8,824 consumers between the ages of 14 and 75, across five different countries: Brazil, Germany, Japan, United Kingdom and the United States.  The survey results have a margin of error of plus or minus five percentage points. 

 

For more information on the study from Deloitte, and how to get the complete study, please visit here.

For more information visit www.mediapost.com

 

Ad Specialties Lowest Cost-Per-Impression

By numantra on January 27, 2009 7:52 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, January 27, 2009



According to a new research study conducted by the Advertising Specialty Institute (ASI), among businesspeople over age 21, revealed that advertising specialties beat out all forms of TV, radio and print advertising as the most cost-effective advertising medium available. The average cost-per-impression of an advertising specialty item is $0.004, making it less expensive per impression than nearly any other media. According to Nielsen Media data, says the report, the CPI for a national magazine ad is $0.033; a newspaper ad is $0.0129; a prime time TV ad is $0.019; a cable TV ad is $0.007; a syndicated TV ad is $0.006; and a spot radio ad is $0.005.

Among key findings, results indicate that:

  • 84% of people remember the advertiser on a product they receive
  • 42% have a more favorable impression of an advertiser after receiving an advertising specialty
  • 24% indicate that they are more likely to do business with an advertiser on items they receive
  • 62% of respondents have done business with the advertiser on a product after receiving it
  • Writing instruments are the most commonly-owned advertising specialty, followed by shirts, caps and bags  

Ad Specialty Items Owned (% of Respondents)

Specialty Item

% Ownership

Writing instruments

54%

Shirts

45

Caps

31

Bags

29

Glassware/ceramics

23

Desk/office/business accessories

17

Calendars

17

Wearables

4

Recognition jewelry

3

Recognition awards

3

Source: Advertising Specialty Institute, January 2009

81% of all promotional products were kept because they were considered useful.

Reason For Keeping Ad Specialty Item (% of Respondents, Multiple Response OK)

Ad Specialty

Useful

Attractive

Information Reference

Other

Bags

91%

34%

0%

20%

Writing instruments

91

12

5

18

Wearables

89

39

0

17

Glasswear/ceramics

86

26

6

24

Desk/office/business accessories

83

14

3

16

Calendars

77

31

6

16

Caps

76

37

1

32

Shirts

74

39

1

33

Recognition jewelry

31

38

0

54

Recognition awards

23

15

0

69

Source: Advertising Specialty Institute, January 2009

Additional findings included:

  • More than three-quarters of respondents have had their items for about seven months
  • Bags were reported to be used most frequently, with respondents indicating that they use their bags on average nine times per month
  • Bags deliver the most impressions, with 1,038 impressions per month on average

Number of Impressions Per Month

Ad Specialty Item

Impressions/Month

Bags

1083

Caps

476

Shirts

365

Writing instruments

363

Desk/office/business accessories

294

Glassware/ceramics

251

Calendars

227

Recognition awards

221

Other wearables

64

Source: Advertising Specialty Institute, January 2009

Timothy M. Andrews, president and chief executive officer of the Advertising Specialty Institute, concludes that "...  this research advises marketers and business owners to invest in advertising specialties now more than ever... Ad specialties provide measurable results for a... reasonable investment... (and) are gifts that break through the information clutter, reach consumers on a personal level, and provide real impact in a creative way."

Please visit ASI here for additional information and a link to the PDF file.

For more information visit www.mediapost.com

 

Non-catalog Direct Mail and Acculturation Segmentation Boost Hispanic Response

By numantra on January 26, 2009 7:59 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, January 26, 2009


A new survey from the Direct Marketing Association, complementing earlier research that focused on the Hispanic market from the consumer view point, presents the business side of marketing to Hispanics to provide benchmarks on the use of direct marketing methods in order to reach the Hispanic audience.

Anne B. Frankel, DMA senior research manager and author of the report, summarizes by saying "... Hispanic marketers find certain media channels and segmentation tools are more effective in increasing response rates among Hispanic consumers... therefore, marketing to Hispanics involves a different cache of tools than marketing to a general audience... it is crucial that direct marketers understand the nuances... "

Partnering with PSA and Zubi Advertising to provide extensive commentary based on their knowledge of marketing to the Hispanic audience, the report notes that:

  • 48.1% of marketers who promote to Hispanics report that the majority of their Hispanic-specific promotions are written or spoken in both Spanish and English. 20.8% say that most of their promotions are in English only, and 19.5% have separate English and Spanish language versions
  • 77% of the companies that market to Hispanics tailor their non-catalog direct mail messaging to this audience
  • 84.4% of respondents who market to Hispanics say that they do not create different versions of their promotions based on dialect and colloquialism
  • 64.9% percent of Hispanic marketers do not create different versions of their promotions for different US locations
  • 91.8% of all companies that market to Hispanics use non-catalog direct mail, and 52.1% use telephone marketing
  • Over ¾ of Hispanic marketers collect language preference/proficiency, age, and gender information
  • 58% of the companies that market to Hispanics use non-email Internet marketing from among the online and new media channel options
  • 53.7% of respondents say that non-catalog direct mail effectively boosts their response rates for Hispanic consumers
  • At least half of those marketers who segment by the level of acculturation or by the number of generations that a family has been in the US say that the segmentation technique effectively increases response

 Please visit the DMA here for more details and the opportunity to purchase the complete study.

For more information visit www.mediapost.com

Pizza Friday 01.23.09

By numantra on January 23, 2009 10:08 AM
Nosh on some pizza and check out the latest news in the ad biz like Whopper Sacrifices, Toyota domination, and Scandinavian weather driven fashion advice.  Yeah, weather driven.
Pizza Friday 80
View more presentations or upload your own. (tags: advertising marketing)

Line Length Matters

By numantra on January 23, 2009 7:52 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Friday, January 23, 2009



According to a new study by Epsilon on the importance of the subject line in an Email promotion, shorter subject lines do generally perform better than longer ones, but the relationship between subject line length and response is weaker than previously thought. Though the research showed that, overall, shorter subject lines correlate with higher open rates and click rates, subject line word order, word choice, and brand and audience awareness are also critical success factors.

A subject line is often the first opportunity an email marketer has to capture a consumer's attention, says Epsilon. Multiple analyses have shown that the subject line is the most important factor in driving overall response, from initial Epsilon clients the subject line is almost always the factor most responsible for open and click to eventual conversion. In more than 20 multivariate tests with triggering opens and clicks. Common sense also underscores the vital importance of the subject line; it is one of the few factors consumers consider when deciding whether to open an email.

Thane Stallings, Senior Analytic Consultant, Epsilon Strategic Services, says that "Companies are spending little time thinking about and testing subject lines, compared to the resources and time devoted to creative development. The reality is that more people will see a subject line than its accompanying creative."

However, the superiority of shorter subject lines (SLL) isn't solely a function of consumers' busy lives and short attention spans, says the report. In fact, SLL is often predetermined by technical constraints.

The Epsilon Whitepaper reports that Email domains often limit the number of subject line characters displayed by default in the inbox:

  • AOL, which is responsible for approximately 22% of the U.S. email market, limits subject lines to roughly 38 characters
  • Yahoo!, with 21% of U.S. email, has a approximate limit of 47 characters per subject line 
  • Hotmail, which has 14% of the U.S. email market, uses word wrap to display subject lines on multiple lines, allowing approximately 45 characters per line

Therefore, 57% of U.S. email recipients see only the first 38 to 47 characters of a subject line when making the decision to open an email. Additionally, the growing reliance on mobile devices, and their smaller screens that display even fewer characters, affects this trend as well.

The report says that, given that most U.S. consumers see only the first 40 characters or so of a subject line, marketers should be careful to construct the subject line in such a way as to include the most vital information first. Epsilon calls this technique "pole position" writing. For one email campaign, the vital piece of information may be the brand name. For another, it may be the consumer benefit. Only systemized testing can reveal what works best in each situation and for each consumer population.

From an analysis of the impact of the more than one billion emails over nearly 20,000 separate campaigns sent out by a selection of US-based clients in the retail and consumer services industries, Epsilon concludes that because higher open and click rates depend on the optimum combination of SLL (subject line length) and content, marketers should keep in mind the following rules of thumb:

  • Front load subject lines with the most important information
  • Keep the subject line as short as possible to convey the message
  • Use longer subject lines only when there is a compelling reason to do so
  • When in doubt, test

Correlation Between SLL And Response For CONSUMER SERVICES COMPANIES

 

Avg. Open

Avg. Click

Avg. SLL

Open/ SLL Correlation

Click/SLL Correlation

Client 1

14.0%

3.8%

37.8

-0.42

-0.59

Client 2

21.5%

2.0%

47.8

0.04

-0.04

Client 3

33.0%

12.6%

36.4

-0.15

-0.03

Client 4

33.8%

12.0%

36.2

-0.15

0.04

Client 5

15.6%

3.3%

48.0

-0.46

-0.23

Average

 

41.2

-0.23

-0.1 7

Source: Epsilon Whitepaper, January 2009

 

Correlation Between SLL And Response For RETAIL COMPANIES

 

Avg. Open

Avg. Click

Avg. SLL

Open/SLL Correlation

Click/SLL Correlation

Client 1

33.9%

7.3%

39.1

0.06

-0.21

Client 2

37.1%

9.8%

44.2

-0.02

0.09

Client 3

28.6%

8.1%

37.8

-0.15

-0.28

Client 4

42.1%

21.5%

29.7

-0.31

-0.09

Client 5

19.2%

6.5%

30.8

-0.08

-0.19

Average

 

36.3

-0.10

-0.1 3

Source: Epsilon Whitepaper, January 2009

Epsilon concludes that this new research confirms the widely held belief that, in most cases, shorter subject lines perform better. However, the research suggests that the way in which content and brand messaging are positioned can be as important to email success as the number of characters in the subject line. While a host of studies show that shorter subject lines improve email performance, Epsilon's research indicates that the relationship between SLL and performance is weaker than is widely believed. Other marketers have found that with specialized audiences, longer subject lines often deliver higher open and click rates. But in all cases, subject line content continues to be a vitally important element in delivering response.

Please explore the findings in greater detail at Epsilon.com here, or read the complete Whitepaper here.

For more information visit www.mediapost.com

Online and Interactive Video Advertising Hot for 2009

By numantra on January 22, 2009 7:28 AM

 

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, January 22, 2009



According to a recent survey of more than 400 senior-level decision makers, conducted by PermissionTV,  online video is the top priority for digital marketing budgets, along with a strong preference among marketers for increased sophistication and interactivity in online video capabilities to promote their brands.

Matt Kaplan, VP of Solutions and Chief Strategy Officer of PermissionTV, said "... online video will play an increasingly critical role in all interactive campaigns... survey results demonstrate the strategic importance of online video in the overall marketing mix... as well as more sophisticated video experiences."

The study finds that more than two-thirds of respondents identified online video as a primary focus of their 2009 digital marketing campaigns, as respondents consider interactive video experiences to be the next evolution for online video. 62 percent believe that non-linear, interactive storytelling will become the most effective medium for marketers.

Digital Marketing Focus in 2009 (% of Respondents, Multiple Response OK)

Anticipated Focus

% of Respondents

Online video

66.8%

Social media

41.6

Search

34.1

Podcasts/Webcasts

32.0

Rich media

30.5

Banner ads

22.8

Mobile

17.4

Source: Permission TV, January 2009

 

Least Likely Media Budget Cuts in 2009 (% of Respondents)

Unlikely Cut

% of Respondents

Digital (banner ads, email, online video, podcasts, webcasts)

33.7%

Traditional (print, radio, TV)

24.7

Trade shows/events

21.3

Guerilla (viral, outdoor, social media)

14.5

Source: Permission TV, January 2009

Linking to other videos, graphic overlays, user comments and user-defined contents paths are the most widely needed interactive capabilities for respondents. In Q2 of 2009, more than half of the respondents expect to be implementing or extending an online video project, whereas currently less than one-third are doing so.

Most Likely Online Video Initiatives in 2009 (% of Respondents)

Video Initiative

% of Respondents

Branded content/video destination

63.9%

Viral video

39.0

Interactive experience

38.3

User-generated video

29.1

E-mail video campaign

28.8

Video syndication

22.5

E-commerce

21.8

Source: Permission TV, January 2009

More than two thirds of respondents reported that strengthening relationships with existing customers and prospects is the primary goal of online video initiatives.

The report notes that traditional and digital/interactive advertising agencies are are overwhelmingly confident in their ability to recommend online video initiatives to clients, though digital/interactive agencies expressed more confidence in recommending online video to clients. However, traditional agencies claim more responsibility for driving online video initiatives than digital/interactive agencies.

Ways Online Video Expected to Enhance Customer Engagement (% of Respondents)

Enhancement

% of Respondents

Increase brand awareness

71.4%

Lead generation

47.2

Loyalty/retention

44.7

Converting customers

41.6

Improving service/support

39.8

Source: Permission TV, January 2009

Chad Ciesil, President at WhittmanHart Interactive, said "We're recommending the use of online video in all of our client's campaigns as it can lead to greater customer engagement and better campaign ROI."

For additional information about this study, please visit PermissionTV here.

For more information visit www.mediapost.com

Legacy Media and New Media Meld: Mass Communications Succumb to Communications by the Masses

By numantra on January 21, 2009 7:50 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, January 21, 2009



According to the third annual U.S. Media Myths & Realities survey by Ketchum and the Annenberg Strategic Public Relations Center, the melding of media means that content deliverables once owned by a specific medium are now found on nearly all platforms, creating a participatory and fragmented media landscape.

As Americans buy products, seek information, plan their social lives, and make personal and business decisions, the lines between media channels in the 21st century have become increasingly blurred, says the study report.

Along with a steep rise in the use of shopping Web sites among consumers, doubling from 2006 to 2008, 44% of those visiting shopping Web sites read consumer reviews and comments there, showing that these sites have transformed into virtual social gathering places and information destinations, rather than just a place to purchase goods.

Consumers are (frequently) placing more trust in the experiences of their online peers than they are on the retailer's product descriptions. This participatory media landscape, says the report, means media audiences are having just as much influence, if not more, as the content providers themselves.

 Nicholas Scibetta, Ketchum partner and director of the agency's Global Media Network, concludes that "... not only are people posting their thoughts via consumer-generated reviews, but they are also responding to each other's comments... (creating) pockets of social networks found all over the Web... conversations among readers, information seekers, and reviewers can be found from The New York Times and The Huffington Post, to YouTube, to the neighborhood blogger... with the widespread availability of such conversations, the lines that once separated mediums have now melded."

 Jerry Swerling, founder and director of the USC Annenberg Strategic Public Relations Center, says ".. it's a transformative time in which we are seeing outlets move from single-media to multi-media... "

Consumers are using a wider variety of channels than ever before. Newer channels, such as blogs and social networking sites, are gaining more and more traction. The survey found that 26% of consumers use social networking sites, compared to 17% in 2006. The usage of blogs nearly doubled (24% in 2008 compared to 13% in 2006).

Consumer Usage of Online Media (% of US Consumers Using)

Online Media

% of Consumers Using

2006

2008

Search engines

61%

59%

Email newsletters

40

42

Cable TV news sites

38

31

Social networking sites

17

26

Company website

22

26

Blogs

13

24

Shopping sites

17

35

Videocasts

6

11

Podcasts

5

7

Company Email blasts

7

9

Business news sites

8

8

RSS news feed

5

7

Mobile media

5

6

Source: Ketchum Public Relations, January 2009

 

 

Among influential consumers, the 10% to 15% of the population who initiate change in their communities, 32% read blogs written by journalists (vs. 8% of the general population), and:

  • 43% read blogs by non-journalists, compared to 16% of the general population
  • 70% of influencers use search engines, vs. 57% of the general population
  • 43% of influencers use video-sharing Web sites, vs. 25% of the  general population
  • 29% of influencers use specialty information portals (such as WebMD), vs.16% of the general population
  • Influencers also use more new media such as videocasts (19%), RSS news feeds (15%), podcasts (12%), and mobile media (9%)

The use of more established media channels continues to wane. 65% of consumers use major network television news as a source of information (down from 71% in 2006). Local television news saw a sharper drop - 62% in 2008 compared to 74% in 2006.

Traditional Media Media Usage (% of Consumers)

Media

% of US Consumers Using

2006

2008

Major network TV News

71%

65%

Local newspapers

69

63

Local TV news

74

63

Cable network news

47

49

Family/friends advice

44

47

Talk radio

36

31

Coworker advice

23

30

National newspapers

18

18

Consumer magazines

23

18

Trade magazines/newsletters

13

12

Celebrity endorsement

14

10

Source: Ketchum Public Relations, January 2009

 

 

Swerling concludes "... we've watched traditional mass communications give way to communications controlled by the masses... the melding of media is... demonstrated in the actions of legacy media, which are continuing to embrace and implement the principles of new media. Conversely, the journalistic principles that underline news organizations... accuracy, timeliness, objectivity... move to other delivery channels."

 For more information about melding media, please visit Ketchum here.

For more information visit www.mediapost.com

Five Billion Mobiles Worldwide By 2012

By numantra on January 20, 2009 7:53 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, January 20, 2009



According to Informa Telecoms & Media's Global Mobile Forecasts, annual revenues from the global mobile market will top (US) $1.03 trillion by 2013, when the number of subscriptions worldwide will have risen to more than 5.3 billion. It took over 20 years to reach 3 billion subscriptions, says the report, but another 1.9 billion net additions are forecast in just six years, with the global total nudging past the 5-billion milestone in 2011.

With this extraordinary growth, total annual revenues derived from mobile operators will grow by over a third, jumping from $769 billion in 2007 to $1.03 trillion six years later.

Informa Telecoms & Media forecasts 78% of global net additions between 2007 and 2013 to come from markets in Asia Pacific, Africa and Latin America.

  • 47% of the 1.9 billion global net adds will come from just five markets - India, China, Indonesia, Brazil and Russia.
  • The mature markets of North America and Western Europe will contribute just 8% of total global net adds, reflecting the high level of saturation in these markets.

Globally, subscription penetration will approach the 75% mark in 2013, while some countries will push past the 150% barrier:

  • Romania (152%)
  • Russia (153%)
  • Italy (168%)
  • Ukraine (173%)
  • Greece (183%)

Growth in subscriptions (the number of SIMs) will outstrip growth in subscribers (the number of unique users), pointing to greater mutli-SIM ownership, says the report. The global ratio of subscriptions to subscribers will increase from 1.29 in 2007 to 1.32 in 2013. In Western Europe, the ratio will reach 1.55 in 2013, and even higher (1.75) in Eastern Europe.

Chris Stamatakis, research analyst at Informa Telecoms & Media, says "... reductions in voice tariffs... low-denomination prepaid top-ups... and... availability of cheap 2G and 2.5G handsets will open... mobile services to low-income, low-ARPU subscribers who have never previously owned a mobile phone."

With voice revenue streams diminishing, industry players will encourage data spend among subscribers by innovating in non-voice services and differentiating their data service offerings from those of their competitors.

  • 2G will remain the dominant technology generation by subscription numbers until 2013, as its market share will fall from 66.9% in 2007 to 32.7% in 2013, as 3G+ technologies gain ground.
  • 3.5G technologies accounted for just 1.2% of total subscriptions in 2007, but will represent 22.9% of the global subscription base by 2013 and exceed the number of 3G subscriptions.

Stamatakis concludes that "... with migration to next-generation technologies already under way... (we) expect operators to focus increasingly on fulfilling consumers' growing demand for mobile broadband... becoming the long-sought killer app for mobile operators."

For more information from Informa, please visit here.

For more information visit www.mediapost.com

Magazine Advertising Down, But Household Basics Endured

By numantra on January 19, 2009 7:48 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, January 19, 2009



According to Publishers Information Bureau (PIB), total magazine rate-card-reported advertising revenue for the full-year 2008 closed at $23,652,018,533, posting a 7.8% decline against the previous year. A total of 220,813 advertising pages were generated throughout the year, a drop of 11.7% compared to 2007.  In the fourth quarter, PIB revenue showed a 13.8% decrease compared to 2007's fourth quarter.  There were 60,814.50 advertising pages counted for the quarter, a decline of 17.1% compared to the same period in 2007.

Ellen Oppenheim, Executive Vice President and Chief Marketing Officer, MPA, says "... magazines have been affected by the economic slump... for longer-lead time monthlies, consumers cut spending during the summer... (causing) advertisers to put buy fewer ads in year-end magazine issues...  In the fall and early winter, rising unemployment and steep stock market declines led to restrained ad spending in weekly titles."

In 2008, declines were seen across the top 12 magazine advertising categories, in both PIB revenues and pages. The most significant decreases were seen in the most beleaguered of sectors: Automotive and Home Furnishings & Supplies. Financial, Insurance & Real Estate. Drugs & Remedies, also saw double-digit declines.

There were bright spots in some of the more recession-resistant subsectors, says the report. For example, ad page and revenue gains were seen for household soaps, cleansers & polishes, and discount department & variety stories within the Retail category, reflecting a budget-conscious environment. In the fourth quarter specifically, growth was seen within Food & Food Products, for basics like dairy, produce and meats; within Apparel & Accessories, for clothing accessories like handbags or hats; as well as within Toiletries & Cosmetics, for personal hygiene & health products.

Full Year Ad Spend Category Totals (2008 vs. 2007)

 

2008

Class Name 

Dollars

%Chg

 Pages 

%Chg

 

 

 

 

 

Toiletries & Cosmetics 

2,476,298,686

-3.9

18,104.86

-9.3

Drugs & Remedies 

2,223,066,800

-14.5

16,706.73

-16.3

Food & Food Products 

2,099,542,708

-1.2

13,573.26

-7.5

Apparel & Accessories 

2,035,274,756

-6.5

22,429.39

-8.2

Retail 

1,881,949,565

-0.8

17,892.46

-7.1

Media & Advertising 

1,743,892,205

-2.1

14,992.89

-2.8

Direct Response Companies 

1,670,112,388

-8.5

16,364.13

-11.2

Automotive 

1,602,279,970

-20.5

14,000.83

-24.3

Home Furnishings & Supplies 

1,384,338,034

-11.5

11,922.41

-17.9

Financial, Insurance & Real Estate 

1,231,277,017

-11.0

11,954.58

-17.3

Public Transportation, Hotels & Resorts 

1,152,174,703

-1.6

14,232.81

-5.3

Technology 

974,403,735

-9.7

9,084.52

-14.7

Source: Publishers Information Bureau, January 9th, 2009  

 

Fourth Quarter Ad Spend Category Totals (2008 vs. 2007)

 

 

2008

Class Name 

Dollars

%Chg

 Pages 

%Chg

 

 

 

 

 

Toiletries & Cosmetics 

730,169,827

-1.7

5,408.81

-8.0

Apparel & Accessories 

608,439,307

-10.0

6,403.49

-12.2

Drugs & Remedies 

563,573,094

-18.8

4,301.07

-19.3

Retail 

543,299,935

-13.2

5,075.20

-16.1

Food & Food Products 

498,841,110

-13.4

3,300.90

-17.6

Media & Advertising 

497,708,642

-5.1

4,345.32

-7.2

Direct Response Companies 

439,891,206

-12.1

4,310.62

-13.0

Automotive 

439,748,768

-21.7

3,814.14

-25.8

Home Furnishings & Supplies 

438,285,079

-18.0

3,710.25

-22.8

Financial, Insurance & Real Estate 

324,020,824

-32.8

3,071.99

-36.5

Technology 

317,409,924

-5.3

2,788.14

-14.7

Public Transportation, Hotels & Resorts 

294,687,827

-12.9

3,911.28

-13.5

Source: Publishers Information Bureau, January 9th, 2009

Please visit these links for magazine totals 2008 Full Year, ad revenue, for magazine totals 4th quarter, ad pages, or for magazine category totals, year 2008 and 4th quarter.

For more information visit www.mediapost.com

News No Longer Newspaper's Forte

By numantra on January 16, 2009 7:46 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Friday, January 16, 2009



According to the Pew Research Center for the People & the Press, the Internet has now surpassed all other media except television as an outlet for national and international news. Currently, 40% of the survey respondents say they get most of their news about national and international issues from the internet, up from just 24% in September 2007. For the first time in a Pew survey, more people say they rely mostly on the internet for news than cite newspapers. Television continues to be cited most frequently as a main source for national and international news.

National and International New Sources (% of Respondents)

Year

Television

Newspaper

Internet

2001

74%

45%

13%

2002

82

42

14

2003

80

50

46

2004

74

46

24

2005

73

36

20

2006

74

37

21

2007

74

34

24

2008

70

35

40

Source: Pew Research Center, December 2008

For young people, however, the internet now rivals television as a main source of national and international news. Nearly six-in-ten Americans younger than 30 (59%) say they get most of their national and international news online; an identical percentage cites television. In September 2007, twice as many young people said they relied mostly on television for news than mentioned the internet (68% vs. 34%).

Main News Source for Young People (% of Respondents Age 18 to 29; Multiple Response OK)

Main News Source

Aug 2006

Sept 2007

Dec 2008

Change 07-08

Television

62%

68%

59%

-11

Internet

32

34

59

+25

Newspaper

29

23

28

+5

Radio

16

13

18

+5

Magazine

1

-

4

+4

Other

3

5

6

+1

Source: Source: Pew Research Center, December 2008

The survey by the Pew Research Center for the People & the Press, conducted Dec. 3-7 among 1,489 adults, finds there has been little change in the individual TV news outlets that people rely on for national and international news:

  • 23% of the public says they get most of their news from CNN
  • 17% cite Fox News;
  • Smaller shares mention other cable and broadcast outlets

While the 2008 presidential campaign attracted high levels of public attention, the economy was the top story of the year in terms of news interest, according to Pew's Weekly News Interest Index. In late September, as the nation's financial crisis deepened, 70% said they were following news about the economy very closely. That ranks among the highest levels of news interest for any story in the past two decades.

Top News Interest Stories of 2008 (% of respondents)

Rank

Story

Date

% of Respondents Who Followed Very Closely

1

Conditions of US economy

9/22-28

70%

2

Rising gasoline price

6/2-8

66

3

Wall Street bailout

9/29-105

62

4

Presidential election

10/13-19

61

5

US Stock Market drop

10/6-12

59

6

Falling gasoline prices

10/13-19

53

7

Hurricane Ike

9/8-14

50

8

Wall Street financial crisis

9/15-21

49

9

Obama transition

11/17-23

49

10

Presidential primary

2/11-17

44

11

Hurricane Gustav

9/1-7

42

12

Auto bailout debate

11/17-23

41

13

Rising unemployment

12/1-7

40

14

Midwest floods

6/16-22

39

15

Olympic games

8/18-24

35

Source: Pew Weekly News Index, December 2008... a weekly survey conducted by the Pew Research Center for the People & the Press, gauging the public's interest in and reaction to major news events.

And, from eMarketer, a recent report confirming that, without sugarcoating, "the outlook for newspaper publishers in the US is dismal." eMarketer estimates that newspaper advertising revenues declined 16.4% in 2008 to $37.9 billion.

US Newspaper Advertising Revenues (Billion $ and % change)

Year

Ad Revenues ($Bil)

% Change from Previous Year

2007

$45.4

-7.9%

2008

37.9

-16.4

2009

31.9

-15.9

2010

30.2

-5.3

2011

29.1

-3.6

2012

28.4

-2.5

Source: eMarketer, December 2008

Carol Krol, eMarketer senior analyst and author of the new report, Newspapers in Crisis: Migrating Online, says "... newspaper revenues are falling more than in any other major medium... even... classified advertising is plummeting due to craigslist and other online alternatives."

The financial pressure on newspapers is enormous, says the report. Ms. Krol continues "... newspaper publishers are beefing up their Websites... "but online ad revenues, which offered a glimmer of hope, are now falling."

The Newspaper Association of America tracked two consecutive quarters of declining revenues for newspapers online for Q2 and Q3 of 2008, the first time that has occurred since it began tracking online figures in 2003.

For 2008, eMarketer estimates online newspaper ad revenues declined by 0.4% overall compared with 2007, to $3.2 billion, and forecasts they will drop further into negative territory in 2009, down 4.7% to $3 billion.

The "State of the News Media 2008" report describes the dilemma as a decoupling of news and advertising: "... the emerging reality is that advertising isn't migrating online with the consumer... new business models beyond advertising may be required," says Ms. Krol.

For additional information about the PEW report, please visit here. To learn more from the eMarketer article, please visit here.

For more information visit www.mediapost.com

Back To Basics For Marketers

By numantra on January 15, 2009 8:03 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, January 15, 2009



The Marketing Executives Networking Group (MENG) and Anderson Analytics, in  its second annual survey of Top Marketing Trends for 2009, report that marketing executives are going back to basics this year, putting renewed focus on satisfying and retaining customers and investing in research and insights, but are sick of hearing about Web 2.0.

Marketers expressed concern on how a recession would impact priorities moving forward, and half of the executives believe their marketing budgets will decrease in 2009, while 56% indicated their staffing plans will either stay the same or increase.

The Top Five Trends:

I  Insight and innovation are viewed as keys to combat down economic and business cycles. 72% of respondents indicated that innovation efforts would stay the same or increase, while 39% say their use of market research will increase in the next year. This is significant given that most marketing experts agree it's imperative to innovate and mine insights during a recession, Anderson Analytics said.

II   Customer satisfaction and customer retention remained the top two marketing concepts followed by marketing ROI, brand loyalty and segmentation, which represents a "Back to Core Principles" approach to marketing. Of the 62 identified marketing concepts, faith-based marketing, six sigma, game theory, anti-americanism and immigration were viewed as the least important.

Buzz Words Or Trends Considered Most Important (% of Top-Box, "Very Important")

Rank

Trend

% Very Important

1

Customer Satisfaction

79%

2

Customer Retention

76%

3

Marketing ROI

65%

4

Brand Loyalty

61%

5

Segmentation

61%

6

Quality

56%

7

SEO (Search Engine Optimization)

48%

8

Competitive Intelligence

43%

9

Data Mining

43%

10

Lead Generation

43%

11

Word of Mouth

42%

12

Alternative Energy

41%

13

Mobile Communications

40%

14

Electronic Media

40%

15

Green Marketing

40%

16

E-commerce

39%

17

Globalization

39%

18

Experiential/Emotive branding

38%

19

SNS (Social Network Sites)

37%

20

Multicultural

36%

Source: MENG & Anderson Analytics, January 2009

Of the 62 identified marketing concepts, faith-based marketing, six sigma, game theory, anti-Americanism and immigration were viewed as the least important.

  • 55   Selective Outsourcing   10%
  • 56   Text Analytics                10%
  • 57   Off Shoring                     8%
  • 58   Immigration                    8%
  • 59   Anti-Americanism          7%
  • 60   Game Theory                5%
  • 61   Six Sigma                      5%
  • Faith Based (Religion)         4%

Source: MENG & Anderson Analytics, January 2009

Among the marketing concepts rated as important by more executives, Customer Retention, Marketing ROI, Lead Generation and Alternative Energy showed the largest increases from last year.

III  The issue of global warming showed the largest decrease in importance (dropping 14 places in the rankings), while green marketing showed a statistically significant 5% drop.

IV  Twice as many marketers are "sick" of hearing about Web 2.0 and related buzzwords such as "blogs" and "social networking" compared to last year's survey; however, marketers still admit they don't know enough about it. This was evident in the results of a social media study MENG released on November 6, 2008 showing 67% of executive marketers consider themselves beginners when it comes to using social media for marketing purposes.

Top 10 Buzzwords Tired of Hearing (% of Respondents)

Rank

Buzzword

2009 Report

2008 Report

1

Web 2.0

19.4%

9.1%

2

Social Networking

12.2%

6.0%

3

Social Media

11.3%

0.8%

4

Blog

7.9%

0.0%

5

Viral Marketing

6.2%

6.3%

6

Synergy

5.8%

5.6%

7

Branding

5.1%

3.2%

8

ROI

4.9%

4.8%

9

Green

4.9%

0.0%

10

SEO

3.8%

1.8%

Source: MENG & Anderson Analytics, January 2009

V   Despite well-publicized quality issues over the last year, China ranked the number one greatest area of opportunity for 53% of the marketers with international responsibility. India was a distant second with only 17% of respondents.

Offshoring, however, has significantly diminished in favor as more executives this year (58% vs. 49% in 2008) agreed that offshoring 'is not as profitable as others think, and is fraught with risk'. Marketing executives also still feel Boomers represent the best opportunity for customer targeting, while the perceived importance of Generation X and Generation Y grew significantly compared to 2008.

The main sources of marketing inspiration remained practically the same this year. Good to Great remained the most widely read and most recommended book. However, several new books appeared on the reading list this year including:

Groundswell, Hot Flat and Crowded, The Black Swan, Predictably Irrational, Mavericks at Work, The New Rules of Marketing and PR, The Art of the Start, Purple Cow, Go Put Your Strengths to Work, and Our Iceberg is Melting.

One Business Book Of All Time Recommended To Fellow Marketers (Ranked by % of Respondents Naming)

2009 Report Rank

Book Title

1

Good to Great

2

Positioning

3

The Tipping Point

4

The 7 Habits of Highly Effective People

5

The World is Flat

5

Marketing Management

7

Crossing the Chasm

8

Built to Last

8

In Search of Excellence

8

Competitive Strategy

8

Blue Ocean Strategy

12

The Discipline of Market Leaders

13

The One Minute Manager

13

Competitive Advantage/Strategy

15

Execution

Source: MENG & Anderson Analytics, January 2009

Similarly to the books, the number one business Guru last year, Seth Godin, remained the favorite marketing guru for 2009. However, Warren Buffet and Malcolm Gladwell increased significantly in popularity and now occupy second and third place, respectively. Jim Stengel also made the Marketing Guru list for the first time this year. Seth Godin was mentioned by most executives as the most important marketing/business Guru for two years in a row

Favorite Marketing Guru For 2009

2009 Report Rank

Number One Business Guru

1

Seth Godin

2

Warren Buffet

3

Malcolm Gladwell

4

Steve Jobs

5

Thomas Friedman

6

Jim Collins

7

Michael Porter

8

Peter Drucker

9

Tom Peters

10

Ram Charan

11

Phil Kotler

11

Jack Welch

13

Jim Stengel

13

Al Ries

Source: MENG & Anderson Analytics, January 2009

Tom H.C. Anderson, managing partner of Anderson Analytics, concludes by saying "This year we saw an increase in importance in several areas, not just 'customer satisfaction' and 'retention'. There were also significant increases in the importance of marketing concepts like 'CRM', 'Data Mining', 'Leading Through Analytics'... together with interest in books like The Black Swan and optimism on Market Research budgets... signals marketing executives realize that in a down economy it's even more important to utilize information efficiently and keep the customers you have."

Anderson Analytics conducted the Marketing Trends Survey among current MENG members between November 15 and December 2 of 2008. The responses yield overall statistics with a confidence interval of +/-3.86% at the 95% confidence level.

For more from the release by MENG, visit here, or for a complete copy of survey results, please visit here.

For more information visit www.mediapost.com

Less Frequent Internet Users Closing The Gap

By numantra on January 14, 2009 7:51 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, January 14, 2009



According to a recent Gallop Poll, Americans' frequent use of the Internet has almost doubled over the last five years; 48% now report using the Internet more than one hour per day compared to 26% in 2002. Post-graduates, those making more than $75,000 per year, and those under age 30 are the most frequent users of the Internet, with more than 6 out of 10 in each group saying they use the Internet more than one hour per day.

Consumers Using Internet More Than One Hour Per Day

 

% Using More Than 1 Hour/Day

January, 2003

26%

January, 2004

27

January, 2005

32

January, 2006

33

January, 2007

37

January, 2008

43

December, 2008

48

Source: Gallop Poll, December 4-7, 2008

The least educated, least affluent, and oldest Americans are those who least often use the Internet, with about one-third or fewer in each group saying they use the Internet more than one hour per day. Smaller gaps exist between men and women, and the employed versus the non-working.

Frequent (More Than One Hour Per Day) Use of The Internet

Demographic Group

% Using More Than 1hr. A Day

Post graduates

68%

Income ≥ $75K

63

Age 18-29

62

Age 30-49

54

Employed

53

Men

53

Some college

52

College grad

51

Income $30-75K

49

Unmarried

48

All adults (U.S.)

48

Non working

41

≤ Highschool

34

Income < $30K

33

Age 65+

23

Source: Gallop Poll, December 4-7, 2008

Among these demographic groups, several posted gains in frequent Internet use in the past year (more than one hour per day) significantly greater than the five percentage point gain measured among adults nationwide. The five groups posting double-digit gains are:

  • Those making less than $30,000 per year
  • Those who are not working
  • Those who are unmarried
  • Those who are under age 30
  • Those with post graduate educations

Men and those 65 and older round out the groups posting gains greater than the national average. The gains among men are particularly interesting when compared to the negligible change among women. Further, college graduates, those aged 30-49 years, and those making $75,000 or more per year were actually slightly less likely than one year ago to report using the Internet more than one hour per day.

The report concludes that Americans are using the Internet more frequently than ever. While the most educated, most affluent, and youngest Americans are those more likely to say they use the Internet more than one hour per day, the less affluent, non-working, and unmarried are increasing their usage at noteworthy rates.

And the author suggests that "... business leaders -- and advertisers in particular -- will be well-served to keep these burgeoning trends in mind. While targeting content toward the most educated, most affluent, and youngest Americans may be an effective strategy today, the growth evident among their counterparts at the other end of the spectrum suggests new strategies may be needed to cater to the frequent Internet users of tomorrow."

Time Personally Spent On Internet (% of Respondents)

 

> 1Hour

≤ 1Hour

A Few Times/Week

A Few Times/Mo or Less

Never

All U.S. Adults

48%

17%

12%

5%

18%

By Gender

 

 

 

 

 

   Men

53

15

11

5

15

   Women

42

19

12

6

20

By Age